Micarta is basically epoxy with some added material to give it strength. That material is often paper, cotton cloth, linen, or canvas. Basically, it's alternating layers of epoxy, and paper (or whatever). This layering gives it the appearance and character of "grain." The epoxy can be colored. And whatever other material is used can also be colored and of various different textures. Paper and linen micarta have very fine grain. Canvas micarta has a very rough grain and texture.
Originally, Micarta was made by GE as an electrical insulator. Epoxy is an excellent insulator, but if you just make a sheet of epoxy, it's to brittle. Adding paper or cloth gives it strength. Later, craftsmen found that Micarta is easy to work with, impervious to moisture, strong, durable, chemical-resistant, and, if you polish it, quite attractive. So, somebody made a knife handle out of a piece of it and the rest -- as they say -- is history.